2008-10-28

Low rates didn't work for Japan, but may work for
us?

You'd think everyone would get it.

Japan kept the lowest interest rates
possible for a very long time. Instead of coming out of recession,
they stayed in perpetual recession and a perpetual bear market.
Central bank actions and low interest rates do not prevent recession
and don't necessarily stop deflation.

In Japan, they seem to have prolonged
it! For God sake, the Nikkei has zero gain in 26 years!

Japan did it the most aggressive way
possible, 0% rates. It didn't work.

But it's going to work in the USA, a
country with a far lower savings rate and huge dependence on foreign
investment?